Economic Warfare: America’s Quiet Siege of Communist China
How tariff clauses, chip control, and trade pressure are closing in on the Red Dragon—and why Red China is absolutely livid.
We’re not dropping bombs. We’re using trade clauses.
Hidden in the U.S.–U.K. trade deal is a provision that allows the President to impose tariffs of up to 50% on British goods if they contain Chinese components considered a national security risk. It sounds technical. It’s not. It’s strategic—supply chain sabotage aimed squarely at Beijing.
This same clause is now being floated in deals with Japan and South Korea. If allies want access to American consumers, they’ll have to ditch Chinese tech. These aren’t just tariffs. They’re warning shots.
Red China is neither pleased nor amused.
Trade as a Tripwire
The clause creates leverage. It ties market access to security compliance. If you’re shipping Chinese semiconductors, electronics, or subsidized components—even indirectly—expect a price to pay.
This isn’t a shotgun approach. It’s precision-targeted economic warfare. The U.S. is forcing a global supply chain audit. One deal at a time.
Europe’s Bind: Dollars vs. Dragons
The U.S. trade deficit with the European Union (EU) reached $235.6 billion in 2024. That imbalance props up European industry. Germany, France, and the Netherlands are all locked in.
But their supply chains run through China.
Even the UK, where the U.S. has a $11.9 billion surplus, now finds itself caught between two giants. The clause says: align with U.S. interests, or pay.
It’s a line in the sand. Europe is wobbling on it.
Asia’s Tightrope: Japan and Korea in the Crosshairs
Japan’s trade deficit with the U.S. is $71.2 billion. Korea’s is $66.0 billion, up nearly 30% in just one year.
Both countries are tech-heavy, export-driven, and deeply enmeshed with Chinese manufacturing. These new clauses push a choice:
Keep doing business with Communist China—or keep access to the world’s biggest consumer market.
Not both.
Beijing’s Playbook: Under Fire
China’s rise has relied on four tactics:
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State subsidies to flood global markets.
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Forced labor to cut costs.
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Dumping goods to kill off competition.
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Backdoor exports through third-party countries.
That last one is now being cut off.
These clauses expose and close the loopholes. Red China’s workaround is gone. And Beijing is breathing fire because they know it.
Taiwan: The Real Flashpoint
At the center of this tightening noose is Taiwan. The island is home to TSMC, which produces over 90% of the world’s advanced chips.
Semiconductors are the new oil. Without them, AI, defense systems, and modern economies come to a standstill.
China knows it needs those chips. The U.S. knows it must deny them.
Beijing’s military buildup in the South China Sea, its constant pressure on Taiwan’s airspace, and its carrier drills all point to one thing: the dragon may strike before the trap snaps shut.
Belt and Road: The Pressure Mounts
China’s Belt and Road Initiative was supposed to be its ticket to global dominance. Now it’s bleeding cash and goodwill.
Countries are defaulting. Projects are collapsing. Infrastructure debts are being renegotiated—or canceled altogether. Alliances are being scrutinized.
At the same time, China faces:
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A shrinking population
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A collapsing property sector
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Trade barriers are closing in from all sides
The noose isn’t just tightening. It’s closing.
NB. China’s Belt and Road Initiative (BRI) operates through a strategic lending model: Beijing offers massive loans to developing countries for infrastructure projects—ports, roads, railways, power plants, and mining operations—often built by Chinese firms using Chinese labor and materials. But when countries struggle to repay, China seizes control of the assets. Ports become Chinese-run. Mineral rights shift to Chinese companies. It’s not foreign aid—it’s collateralized influence, locking nations into long-term dependency under threat of default.
The Dangerous Window
The U.S. strategy is working. But slowly.
And that’s the danger.
While these clauses and pressure campaigns grind forward, America’s defenses are strained:
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Weapons stockpiles are low in Ukraine.
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Taiwan isn’t fully fortified.
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Defense production is behind.
That creates a window. Red China may not wait to be boxed in.
Desperation starts wars. And Beijing is angry, isolated, and watching the clock.
Conclusion: Clause by Clause, the Trap Closes
These clauses aren’t headlines. They’re tripwires.
Each one tightens the grip on Communist China’s industrial lifelines. The dollar, not the drone, is the weapon of choice. And for now, it’s working.
But the Red Dragon is cornered. And history warns us what happens when cornered regimes feel the walls closing in.
The siege is on. The dragon is livid.
We’d better be ready if it breathes fire.
My thanks to Bryan Dean Wright of the Wright Report who reported on the derivative clause. This was the link to a lot of loose ends on Red China.